10 Best Term Life Insurance Companies in 2026 [Check Out These Providers]

AAA, Allstate, and Nationwide offer the best term life insurance companies, with minimum coverage rates as low as $25 a month. AAA is leading in terms of its wide variety of term life insurance coverage, allowing new customers to earn substantial savings of up to 10% in term life plans.

This article will explain top life insurance coverage and what you need to know to get the best term life insurance for your unique lifestyle and budget.

Our Top 10 Picks: Best Term Life Insurance Companies

Uncover cheap term life insurance rates near you by entering your ZIP code into our free quote tool.

#1 — AAA: Top Overall Pick

Pros

• Membership Savings: It offers exclusive discounts on term life insurance plans for AAA members. Get the full details in our AAA life insurance review.
• Automatic Renewal: This guarantees that AAA policyholders automatically renew term life insurance policies without a medical exam.
• Added Benefits: AAA members can get add-on perks like identity theft aside from their term life insurance.

Cons

• Slow Underwriting: Getting approval from the best term life insurance companies like AAA can be slow due to strict medical requirements.
• Limited in Some Regions: AAA’s service is unavailable in some US states.

#2 —Allstate: Best for Bundling Discounts

Pros

• Generous Savings for Bundles: Among the best term life insurance companies, Allstate offers customers a 25% savings when bundling life insurance with home or auto insurance.
• Nationwide Reach: Its term life coverage is accessible and available in most states.
• Term Policy Flexibility: Allstate’s life insurance review mentioned that it offers options for converting term life policies to permanent policies without new medical requirements.

Cons

• Higher Base Premiums: Without bundling, Allstate’s term life insurance rates can be higher than its competitors.
• Fewer No-Medical-Exam Options: Some competitors offer more simplified issue policies without medical underwriting.

#3 — Nationwide: Best for Comprehensive Coverage

Pros

• Fixed Premiums: Nationwide’s fixed-term life insurance cost assures budget-conscious customers.
• Accelerated Rider Benefit: Nationwide allows policyholders to access their funds early when diagnosed with a terminal sickness.
• Multiple Conversion Options: Policyholders can switch to permanent coverage without medical requalification.

Cons

• Medical Exam Typically Required: Most policies require a complete medical exam, slowing approval.
• Fewer Member Perks: Lacks some additional benefits that other insurers, such as AAA, provide. Check out the complete details in our Nationwide insurance review.

#4 — State Farm: Best for Customer Service

Pros

• Top Rated Client Service: According to State Farm life insurance review, the company is known for its incredible customer support in handling term life insurance plans.
• Local Expert Support: With its dedicated agents, it offers top-rated life insurance plans with a personalized approach.
• Customizable Coverage Amounts: Flexible term life insurance policies to fit different financial plans.

Cons

• Limited No-Medical-Exam Options: Few policies are available without a complete medical exam.
• Not Available in All States: Some regions may have limited coverage availability.

#5 — Liberty Mutual: Best for Policy Options

Pros

• Diverse Policy Choices: Offers a variety of term life insurance plans to fit different needs. Learn more about these policies in our Liberty Mutual life insurance review.
• Customizable Term Lengths: Individuals can choose term life insurance durations beyond the standard 10, 20, or 30 years.
• Bundling Discounts: Up to 25% savings when combined with home or auto insurance.

Cons

• Higher Rates for Older Applicants: Premiums increase significantly for older individuals.
• Medical Exams Required for Most Policies: No-exam options are limited compared to competitors.

#6 — Travelers: Best for Reliable Coverage

Pros

• Accelerated Death Benefit Option: Allows early access to policy benefits for a terminal illness.
• Conversion to Permanent Coverage: Policyholders can switch to permanent life insurance without additional underwriting.
• Same Life Insurance Rates: Travelers guarantee policyholders the same term life insurance policy rates throughout the plan’s duration.

Cons

• Not Available in All States: Some regions may not offer term life insurance coverage. Find additional details in our Travelers life insurance review.
• Limited Online Services: Some policy changes require working directly with an agent instead of online self-service.

#7 — Farmers: Best for Family Coverage

Pros

• Strong Family-Oriented Policies: Offers term life insurance options that can easily be converted to long-term protection for families.
• Competitive Premiums: Provides affordable rates for term life insurance, particularly for younger applicants.
• Customizable Riders: Allows for add-ons like child riders, accidental death, and waiver of premium options.

Cons

• Medical Exam Required: No-exam options are limited compared to competitors.
• Higher Rates for Older Applicants: Premiums rise significantly with age. Uncover more insights in our Farmers insurance review.

#8 — Erie: Best for Customer Satisfaction

Pros

• Top-Rated Customer Satisfaction: Erie’s expert agents provide excellent service throughout the policy for term life insurance customers.
• No Medical Exam Options Available: Provides simplified underwriting for qualifying applicants.
• Policy Conversion Flexibility: Term life insurance can be converted into permanent coverage without a new medical exam.

Cons

• Longer Approval Process: Some applicants report extended underwriting times. For further details, check our Erie life insurance review.
• Limited Nationwide Availability: Erie term life insurance is unavailable in all states.

#9 — American Family: Best for Family Plans

Pros

• Strong Family-Oriented Coverage: Offers term life insurance plans designed for families, including child riders.
• Multiple Term Length Options: Offers term life insurance in 10, 15, 20, and 30-year durations.
• Bundling Discounts: Offers up to 25% off when combined with home or auto insurance. Learn more by reviewing our American Family life insurance review.

Cons

• Limited No-Medical-Exam Options: Most policies require a full medical underwriting process.
• Not the Lowest Rates: Some competitors offer slightly cheaper term life insurance rates.

#10 — The Hartford: Best for Senior Benefits

Pros

• Guaranteed Renewability: Allows seniors to renew term life insurance policies even after the term expires.
• Customizable Coverage Options: Offers term life insurance for seniors with various term lengths and benefit amounts to fit retirement planning needs.
• Dedicated Customer Support: Known for strong policyholder assistance, particularly for senior applicants.

Cons

• Limited Availability: Some policies may only be available to AARP members. To learn more, read our The Hartford insurance review.
• Not Ideal for Long-Term Coverage: While renewable, premiums increase significantly with age.

Best Term Life Insurance Companies by Rates & Coverage Level

Deciding to purchase the best term life insurance from top companies is an important decision that can help you protect your family for the future. However, you might feel confused and overwhelmed because of the different types of life insurance available in the market.

Term Life Insurance Companies Monthly Rates by Provider & Coverage Level

But we’re here to help. You can use the rates above from top providers and their term coverage to gauge how much you will keep aside part of your income for a term life coverage.

Whether you’re young or have children, we suggest considering buying term life insurance to avoid financial burdens due to unforeseen events. This complete guide to the top term life insurance coverage will explain why term life insurance’s basic terms could be a great policy option for you.

Best Term Life Insurance Discounts from Top Providers

You can start by knowing what discounts term-life insurers offer for the best deal for top-term life insurance. Taking advantage of substantial offers can help you lower your monthly insurance cost and get the most affordable plan suited to your needs.

Term Life insurance Discounts From the Top Providers

By understanding how life insurance policies work, you can get the best term life insurance for better protection in the future. Once you are ready to look for term life coverage, you can use our free quote comparison tool to find cheap term life insurance coverage.

Top Term Life Insurance Companies by Market Share

Understanding the top best-term life insurance companies can help you identify your future needs. If you need help looking for a good term life insurance company, you can start with the top 10 companies by market share, according to the National Association of Insurance Commissioners (NAIC):

Top 10 Life Insurance Market Share by Provider

State Farm, Allstate, and American Family lead in market share, ensuring customers have a seamless claims-handling process and payout.

You can see some of our choices below.

• Allstate: Offers term life insurance that you can choose to bundle with auto, home, renters, or any other type of policy they offer
• State Farm: Life insurance with level premiums and an equal death benefit on their term life

These companies are sure to have a term life policy that is exactly what you need.

Average Monthly Term Life Insurance Rates

When finding and searching for the best term life insurance rates for any policy isn’t overly complicated. The table below shows the average monthly rates for top life insurance companies.

Term Life Insurance Monthly Rates for Non-Smokers by Age, Gender & $100,000 Policy / 10-Year Term

You should work on prolonging your life to the best of your ability. If you smoke, compare the best life insurance policies for smokers and how much higher you’ll pay for a term life policy.

Term Life Insurance Monthly Rates for Non-Smokers by Age, Gender & $100,000 Policy / 10-Year Term

You should cut out at least some of the greasy food and hit the gym. Some term life insurance companies will even give you an extra benefit if they can tell that you’ve been putting in the effort to stay in shape.

Another example is to get term life insurance with no medical exam policy, which gives you a flat rate that is not dependent on your health. However, just to be aware, expect that some life insurance company still conducts medical exams to quote you for a plan.

Factors That Affect Your Term Life Insurance Rates

If life insurers gave every customer the same flat premium monthly, they would lose money before they ever had any. Instead, an underwriter will ask you questions and then use a term life insurance calculator to find your rates based on risk.

Life Insurance Risk Categories

What affects your term life insurance quotes can be boiled down to a few common risk groupings. The more likely you are to die during the policy’s life, the more likely you will have to pay higher premiums.

Factors Affecting Term Life Insurance Rates

Other factors you should consider when looking for life insurance term coverage include smoking, age, health condition, hobbies, family medical history, and more. These factors can either increase or decrease your monthly insurance premiums. So buckle up, curb your risky behavior, and hit the gym for the best rates.

Term Life Insurance Coverage Explained

First, you’re probably wondering, what is term life insurance? Often referred to as pure life insurance, term life guarantees a predetermined premium for a predetermined number of decades. The longer the policy, the more you can expect to pay for your life insurance coverage.

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With your level-term life insurance premium rates, you know exactly how much your family will receive if you make your premium payments and meet your policy’s requirements. (For more information, read our article “Understanding Level Term Life Insurance: What is it and how does it work?”)

As with all legal contracts, there are many words that only lawyers use to mean simple things.

• Insurability: How an insurer determines if you will be accepted into the policy
• Term: A period of time in which your policy covers your death
• Premium: What you pay each month to maintain your coverage
• Guaranteed Level: Guarantees that your premiums and death benefit will be the same for the length of your policy
• Return of Premiums: This allows you to get a portion of your premiums back if you outlive your policy. Before you get bogged down in red tape, it’s a good idea to familiarize yourself with these terms.
• Insurability Your insurability is how much financial risk the insurer will take on during your policy. The more likely the insurance company is to have to pay out the death benefit, the more you will have to pay to cover that risk.

An insurer will determine your rates through a process called underwriting. An underwriter will consider different risk factors in your life, such as your current health and habits. With term life insurance, your coverage will expire if you outlive the term. If you decide to purchase another policy, your insurability will automatically be worse than when you signed up.

• Term Length. The term of your policy is how long you’ll continue to have coverage. It usually depends on your insurability and is usually several decades.

If your policy runs out and you must buy a new one, your rates will automatically increase. As discussed previously, a renewable or convertible policy allows you to further your coverage while saving on your premiums.

• Premiums. A premium is a monthly payment you make for the life of your policy. These vary from person to person, depending on your life. If your policy expires, you will lose out completely on everything you paid into the policy.
• Guaranteed Level. If your insurer tells you that your premiums are guaranteed level, you can expect your death benefit and premiums to be equal for the life of your policy. Guaranteed-level term policies are the easiest way to get coverage for a period of your life.
• Return of Premium. If you don’t like the idea of losing out on your investment when your policy expires, you can get a portion of your premiums back with this additional rider. The best return of a premium life insurance policy will allow you to get a portion back. (For more information, read our “Understanding Return of Premium Life Insurance“).

It won’t be anywhere near your death benefit or what you paid, but it’s a good idea for those who don’t like the idea of losing out entirely on their investment.

How Term Life Insurance Works

Understanding how direct term life insurance works can be confusing. With a term life policy, you pay your monthly premiums to ensure your coverage for the duration of your policy. It is regarded as the most hassle-free option for life insurance.

Unlike with whole life, there is no cash value. Because of this, your premiums will be much cheaper, though you lose out more on your investment. Here are some advantages and disadvantages when considering term life insurance.

Term life is perfect for preparing to take care of your family or any situation that would suffer if you were to pass away. So, it doesn’t get much more basic than a traditional term life policy.

Now that you know the advantages and disadvantages of a term life policy, let’s talk about who should buy term life insurance.

Who Should Buy Term Life Insurance

Term life can help with a variety of different situations in your life.

New families will find term life ideal for securing their new family’s future should anything happen to either provider. Young adults will automatically pay less than if they waited until they were 35 and decided they really need it

Retirees will find the term most ideal for setting up an inheritance or trust for children or grandkids. Business owners, especially those early in their professional life, will find that the death benefit can keep their business afloat during the leadership transition

If you don’t fit into one of these categories, don’t worry. The good thing about term life is that almost everyone can find a use for it. The graphic below lists some reasons why you should buy term life insurance.

Getting a term life insurance policy can be challenging to your finances, but unlike a whole life policy, availing a term life policy can be cheaper if you want your family to be protected in case you suffer from inevitable and unfortunate scenarios.

Types of Term Life Insurance Policies

Term life is a general name for various policies that last for a term. There are a number of term life policies that allow you to customize your coverage to your lifestyle. Here are a few:

• Level Term Life Insurance. A traditional term life policy will allow for guaranteed level premiums and death benefits. However, while it offers equal coverage and payments, you lose 100 percent of your investment. As discussed previously, this policy can be used by almost anyone.
• Increasing Term Life Insurance. With an increasing term policy, your death benefit will increase at a steady rate as you achieve more success in your personal life. This is great for younger people who expect that their future is headed in a successful direction.
• That being said, the whole purpose of understanding life insurance is to be aware of life’s uncertainty. That is also something to consider when creating an increasing term policy.
• Decreasing Term Life Insurance. What is decreasing term life insurance? Like the increasing term policy, the decreasing term changes as the policy goes on. The death benefit and premiums will decrease in value until the end of the term, when they will be virtually nothing. (For more information, read our “Understanding Decreasing Term Life Insurance“).
• This policy is designed for those with families that will need less coverage as time goes on. As children age and leave the house, they will provide for themselves instead of relying on you. However, what you save on premiums could be used to invest and provide your own coverage, so you no longer need the death benefit.
• Renewable Term Life Insurance. What happens if I outlive my term life insurance? This is where annual renewable term life policy insurance comes in. With a term life policy, your coverage will run out when the term expires.
• This is the one downside of term life insurance compared to whole life. When you apply for a new policy, you’ll find that you’ll have to pay much more for the same coverage you had before.
• That’s why insurers created the renewable term life policy to allow you to know exactly how much you’ll have to pay to continue your coverage. The rates usually increase each renewal at a steady rate until a certain age.
• Convertible Term Life Insurance A convertible term policy offers the coverage and confidence of the term with the option to switch to a permanent policy later in life. With this policy, your rates will be the same when you switch to whole life as they would have been the day you signed up for the term policy. That makes this an option to consider if you’re worried about proving insurability later on.

Shopping for Term Life Insurance Quotes

Sometimes, you ask yourself how much life insurance coverage you need. You should look at your current life and circumstances. If you have bad habits, bad health, or anything else that risks your life, you should try to minimize that before applying.

Best-term life insurance companies like AAA, Nationwide, and Allstate offer relatively affordable term life insurance prices and comprehensive term life insurance coverage. You can start by getting life insurance rates from these providers or contact a local agent or life insurance broker to sort out your factors and get the best deal for your future protection and needs.

You can buy life insurance online or start the process right here on this page by clicking on the quote tool.

Changing Your Term Life Insurance Policy: Converting Your Term Life Insurance

During the life of your term policy, you may need to change your policy to more permanent coverage so that your investment doesn’t go to waste, like opting for whole-life policy insurance.

With a policy that has a conversion option built-in, you will have the ability to convert to permanent life insurance after a certain point as long as you have paid your premiums. You won’t have to choose term life insurance versus convertible life insurance.

This is an appealing option because your life rates will be the same as when you first applied for your term life policy. This will translate into untold savings. So, in that sense, when you think of which is better, term or whole life insurance, the answer is the term.

Pros & Cons of Term Life Insurance

Like all life insurance policies, this type of life insurance has advantages and disadvantages, and knowing this information can help you weigh your options to get the most affordable term life insurance for your budget and your family’s protection.

Pros & Cons of Term Life Insurance

If you need coverage for only a certain time and don’t mind losing your investment, you will find a term life policy just right for you.

Pros & Cons of Term Life Policies by Type

As you can see, each policy type has perks, but there are also negatives to consider when deciding which policy is right for you.

Should I convert my term life insurance to whole life? The answer depends heavily on your life and what you seek in a policy. (For more information, read our “Term vs Permanent Life Insurance: Which is better?“).

Term Life Insurance: Recommended Life Insurance Coverage

A life insurance policy is imperative to cover your family’s future. With a term life insurance policy, you can have coverage for just as long as you need it, with some options to convert.

Comparing life insurance rates can be overwhelming, but if you would like to cover a specific period of time in your life, such as a budding young family or new business, or you just want to plan ahead for the inevitable rising costs of final expenses like funerals. In that case, you will find that term life insurance is perfect for your family and livelihood.

We hope this life insurance guide was helpful. Ready to find the best term life insurance policy for you? Use our FREE quote tool to find your term life insurance rates.